CURRENCY MARKETS

Published: May 22, 1992

Gold prices fell. On the New York Commodity Exchange, gold bullion for current delivery was $337 an ounce, down from $338 on Wednesday. Later, the Republic National Bank also quoted gold at $337, off 50 cents an ounce.

A dollar rally amid moderate morning trading ran out of steam in the afternoon ahead of the long Memorial Day weekend, said Ken Boyer, a market analyst with MMS International.

Traders said that indicated the rise had been more a technical correction than a shift in the market sentiment toward the dollar. On Wednesday, the dollar reversed its downward spiral of the last few sessions.

Mr. Boyer said the morning rise was prompted in part by an article in The Wall Street Journal that said the Federal Reserve's policy makers had decided against an immediate cut in short-term interest rates.

Such a move would help the dollar, since lower interest rates make dollar-denominated securities less valuable to investors.

The article prompted short-covering in a market that had heavily oversold the dollar expecting the Fed might tinker with rates to shore up the faltering economy.

Mr. Boyer said that other than speculation about whether or not the Fed would change its monetary policy, there was not much news moving the market.

In New York, the dollar closed at 130.35 Japanese yen, up from 129.50 Wednesday. In Tokyo, the dollar rose to 129.61 yen, from 129.22 at Wednesday's close. In London, it rose to 130.25 yen.

The British pound in New York was quoted at $1.8165, down from $1.8310 late Wednesday. In London, sterling fell to $1.8170, from $1.8300 Wednesday.

Other late dollar rates in New York, compared with late Wednesday, were: 1.6155 German marks, up from 1.6010; 1.4850 Swiss Francs, up from 1.4700; 5.4360 French francs, up from 5.3865; 1,218.00 Italian lire, up from 1,205.00, and 1.19745 Canadian dollars, up from 1.19445.